Your firm has just issued a 20-year $1,000.00 par value, 6% coupon sem

Your firm has just issued a 20-year $1,000.00 par value, 6% coupon semiannual bond for a net price of $964.00. What is the yield to maturity? Use a financial calculator to determine your answer.

A) 3.16%
B) 7.33%
C) 6.32%
D) 6.00%

ANSWER

Answer: C
Explanation: C)
Mode = P/Y = 2; C/Y = 2
Input 40 ? -964 30 1,000
Key N I/Y PV PMT FV
CPT 6.32%